TaxTMI 
TaxTMI 
2022 (11) TMI 862
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....ral Excise liabilities on the manufacturing of RMC @2% in terms of Sr.No. 46 of the Notification No. 01/2011-C.E. dated 01.03.2011 without availment of Cenvat Credit. While supplying their RMC, they are also undertaking the activity of laying of RMC using of concrete pumping at the site of the buyer of RMC. On removal of RMC from the factory, the appellant are paying Central Excise duty. Having entered into contract with the buyer of RMC which is of works contract which include supply of RMC and laying of RMC at the buyer's site. The case of the department is that it is a composite contract for supply and laying of RMC falls under works contract and liable to service tax. Appellant also filed VAT returns under (Form -202) section 14A of Guj....
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....the place specified by the buyer and thus cost of the product includes all the incidental and ancillary services value on the principal supply of ready mix concrete and the Appellant has suffered Central Excise Duty on this complete value. 3. He also submits that department assessed the service tax liability on the taxable value @40% of the invoice value considering the supply to be Original Work under Rule 2A of the Service tax (Determination of value) rules, 2006, which is totally incorrect as there is no activity of any original works as far as the Appellant is concerned. The whole case is developed on the basis of sales tax assessment of the goods @0.06% under composition scheme without Cenvat credit applicable to work contract servi....
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....n audited vide Audit report No. 965/2018-19/CE in the year 2018-19 covering the period April 2013 to 2017. 6. Shri R P Parekh, learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that appellant with their client has agreement in respect of works contract which includes supply of RMC along with some services such as laying of RMC at the recipient's site and therefore, it is correctly falls under the service of works contract. 7. We have carefully considered the submissions made by both the sides and perused the record. 8. As regard the demand of Service tax under work contract service, we find that the entire case of the department is based only on the contract bet....
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.... property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property;" 9. From the above definition, it is clear that manufacturing activity of RMC cannot be covered under Works Contract by any stretch of imagination. Therefore, even though there is contract of Works Contract basically for the purpose of VAT Act, cannot be applied in the present transaction of manufacture and sale of goods in terms of Section....